Preaxia Health Care Payment Systems Files 2024 10-K

TL;DR

Preaxia Health Care Payment Systems filed its 2024 10-K, detailing financials for FY ending May 31, 2024. Formerly Sun World Partners.

AI Summary

Preaxia Health Care Payment Systems Inc. filed its 10-K for the fiscal year ending May 31, 2024, reporting on its financial performance and business operations. The company, formerly known as Sun World Partners Inc., is incorporated in Nevada and operates in the retail home furniture, furnishings, and equipment stores sector. The filing details its financial statements, including common stock, additional paid-in capital, accumulated other comprehensive income, and retained earnings for the fiscal years 2022, 2023, and 2024.

Why It Matters

This 10-K filing provides investors and stakeholders with a comprehensive overview of Preaxia Health Care Payment Systems Inc.'s financial health and operational status for the fiscal year ending May 31, 2024.

Risk Assessment

Risk Level: low — The filing is a standard annual report and does not contain immediate red flags or significant negative developments.

Key Numbers

• 2024-05-31 — Fiscal Year End (The period covered by the financial statements in the 10-K.)
• 2024-10-10 — Filing Date (The date the 10-K was submitted to the SEC.)
• 0001350156 — Central Index Key (Unique identifier for the company in the SEC EDGAR system.)

Key Players & Entities

• PREAXIA HEALTH CARE PAYMENT SYSTEMS INC. (company) — Filer of the 10-K
• SUN WORLD PARTNERS INC (company) — Former name of the filer
• 0001350156 (company) — Central Index Key for the filer
• 20240531 (date) — Fiscal year end date
• 20241010 (date) — Filing date

FAQ

Key Financial Figures

• $0.001 — ection 12(g) of the Act: Common Stock, $0.001 par value (Title of class) Indicate
• $123.3 billion — ies suggest that HSAs in the US reached $123.3 billion in assets in 2023 and 34.7 million cons
• $22 billion — offering HSAs in the USA, manages over $22 billion in deposits. It is one of the largest d
• $5,632 — nded May 31, 2024 and 2023, we incurred $5,632 and $6,528 in research and development
• $6,528 — , 2024 and 2023, we incurred $5,632 and $6,528 in research and development expenses.
• $0.057 — Quarter Ended High Low 05/31/2024 $0.057 $0.057 02/28/2024 $0.057 $0.057
• $0.0565 — 3 $0.057 $0.057 08/31/2023 $0.057 $0.0565 05/31/2023 $0.0565 $0.0565 02/28/
• $0.45 — 31/2023 $0.0565 $0.0565 02/28/2023 $0.45 $0.0565 11/30/2022 $0.0565 $0.0565
• $0.25 — 30/2022 $0.0565 $0.0565 08/31/2022 $0.25 $0.0565 Holders of Our Common Stock
• $14 — ay 31, 2024, PreAxia's cash balance was $14 compared to $6 as of May 31, 2023. Our
• $6 — Axia's cash balance was $14 compared to $6 as of May 31, 2023. Our Company will be
• $2,396,179 — reAxia had a working capital deficit of $2,396,179 as of May 31, 2024, compared with a wor
• $2,296,730 — pared with a working capital deficit of $2,296,730 as of May 31, 2023. Our ability to me
• $1,000,000 — oject that we will require an estimated $1,000,000 over the next twelve-month period to pa
• $300,000 — our arms-length creditors approximately $300,000 plus an additional $700,000 to complete

Filing Documents

• paxh5312024k.htm (10-K) — 520KB
• ex31.htm (EX-31) — 8KB
• ex32.htm (EX-32) — 5KB
• image_001.jpg (GRAPHIC) — 7KB
• imagesig.jpg (GRAPHIC) — 12KB
• 0001262463-24-000089.txt ( ) — 2456KB
• paxh-20240531.xsd (EX-101.SCH) — 17KB
• paxh-20240531_cal.xml (EX-101.CAL) — 24KB
• paxh-20240531_def.xml (EX-101.DEF) — 47KB
• paxh-20240531_lab.xml (EX-101.LAB) — 185KB
• paxh-20240531_pre.xml (EX-101.PRE) — 143KB
• paxh5312024k_htm.xml (XML) — 207KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS. 3

RISK FACTORS

ITEM 1A. RISK FACTORS 7

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 7

PROPERTIES

ITEM 2. PROPERTIES 7

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 7

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 7 PART II 7

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 7

SELECTED FINANCIAL DATA

ITEM 6. SELECTED FINANCIAL DATA 8

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 8

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 11

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 11

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 12

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 12

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 12 PART III 13

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 13

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 16

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 18

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 18

PRINCIPAL ACCOUNTING FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 19 PART IV 20

EXHIBITS, FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 20

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 20

SIGNATURES

SIGNATURES 21 3 PART I

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS. This annual report contains forward-looking you can identify forward-looking statements by terminology such as "may," "should," "intend," "expect,", "plan," "anticipate," "believe," "estimate," "predict," "potential," or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, including uncertainties and other factors, which may cause our or our industry's actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. These risks and uncertainties include: a continued downturn in international economic conditions; any adverse occurrence with respect to the development or marketing of our product; any adverse occurrence with respect to any of our licensing agreements; our ability to successfully bring products to market; product development or other initiatives by our competitors; fluctuations in the availability and cost of materials required to produce our products; any adverse occurrence with respect to distribution of our products; potential negative financial impact from claims, lawsuits and other legal proceedings or challenges; and other factors beyond our control. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or performance. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results. As used in this annual report, the terms "we," "us," "our," the "Corporation," and "PreAxia" mean PreAxia Health Care Payment Systems Inc. and our

BUSINESS

ITEM 1. BUSINESS Corporate Overview PreAxia Health Care Payment Systems Inc. (the "Company" or "PreAxia") was incorporated on April 3, 2000 in the State of Nevada. The Company primarily undertakes its operations through its wholly owned subsidiary, PreAxia Health Care Payment Limited ("PreAxia Payment"). PreAxia Payment was incorporated pursuant to the laws of the Province of Alberta on November 26, 2015. General Overview PreAxia Payment is a company which intends to deliver a comprehensive suite of solutions and services directed at the emerging health payment market, specifically the opportunities tied to the growth of health spending accounts ("HSA"). There is a rapid shift in healthcare traditional payment models to consumer-directed healthcare that is creating significant opportunities for financial services and insurance industries to deliver new dynamic products to this emerging market. Spawned by the need to address escalating health care costs, changes in the regulatory environment and the growing consumer desire for greater participation in the management of their health benefits, the boundaries between health care and the financial services industries are becoming increasingly blurred. With the trend towards self-directed health payment solutions and the growing demand for faster, easier and more convenient benefit services, the insurance and benefits industries are banking on HSA medical payments being their next big growth conduit. Studies suggest that HSAs in the US reached $123.3 billion in assets in 2023 and 34.7 million consumers in 2023, an increase of more than 18% of assets over the prior year. This coupled with the continued growth of the Canadian group insurance industry illustrates the emerging opportunity for innovative health payment services. We intend to initially launch our products in Canada. We believe that Canadian businesses are embracing a new healthcare financing vehicle to provide greater value to employees, increase profi

RISK FACTORS

ITEM 1A. RISK FACTORS Not applicable to smaller reporting companies.

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS Not applicable.

PROPERTIES

ITEM 2. PROPERTIES Although much of the research and development and the building of our system have been completed, our Calgary office closed during the 2017 fiscal year, and we presently operate out of remote employment sites.

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS We know of no material, active or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES Not applicable. PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock is quoted on the OTC Markets Pink Sheets under the symbol PAXH. Following is a report of high and low bid prices for each quarterly period for the years ended May 31, 2024 and 2023. Quarter Ended High Low 05/31/2024 $0.057 $0.057 02/28/2024 $0.057 $0.057 11/30/2023 $0.057 $0.057 08/31/2023 $0.057 $0.0565 05/31/2023 $0.0565 $0.0565 02/28/2023 $0.45 $0.0565 11/30/2022 $0.0565 $0.0565 08/31/2022 $0.25 $0.0565 Holders of Our Common Stock As of October 10, 2024, there were 83 holders of record of our common stock and 19,767,698 shares of common stock outstanding. There is currently only one class of common stock with one vote per share. Pacific Stock Transfer Company of 6725 Via Austin Parkway, Suite 300, Las Vegas, Nevada 89119, is the registrar and transfer agent for our common shares. Dividends We have not declared or paid dividends on shares of our common stock and we do not expect to declare or pay dividends on shares of our common stock for the foreseeable future. We intend to retain earnings, if any, to finance the development and expansion of our business. Our future dividend policy will be subject to the discretion of our board of directors and will depend upon our future earnings, if any, our financial condition, and other factors deemed relevant by the board. 7 Equity Compensation Plans We adopted and approved our current stock option plan on January 28, 2010. The following table provides a summary of the number of options granted under our stock option plan, the weighted average exercise price and the number of options remaining available for issuance all as of May 31, 2024. Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number

SELECTED FINANCIAL DATA

ITEM 6. SELECTED FINANCIAL DATA Not Applicable.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS General Overview Corporate Overview PreAxia Health Care Payment Systems Inc. (the "Company" or "PreAxia") was incorporated on April 3, 2000 in the State of Nevada. The Company primarily undertakes its operations through its wholly owned subsidiary, PreAxia Health Care Payment Limited ("PreAxia Payment"). PreAxia Payment was incorporated pursuant to the laws of the Province of Alberta on November 26, 2015. General Overview PreAxia Payment is a company which intends to deliver a comprehensive suite of solutions and services directed at the emerging health payment market, specifically the opportunities tied to the growth of health spending accounts ("HSA"). There is a rapid shift in healthcare traditional payment models to consumer-directed healthcare that is creating significant opportunities for financial services and insurance industries to deliver new dynamic products to this emerging market. Spawned by the need to address escalating health care costs, changes in the regulatory environment and the growing consumer desire for greater participation in the management of their health benefits, the boundaries between health care and the financial services industries are becoming increasingly blurred. With the trend towards self-directed health payment solutions and the growing demand for faster, easier and more convenient benefit services, the insurance and benefits industries are banking on HSA medical payments being their next big growth conduit. Studies suggest that HSAs in the US reached $123.3 billion in assets in 2023 and 37.4 million consumers in 2023, an increase of more than 18% of assets over the prior year. This coupled with the continued growth of the Canadian group insurance industry illustrates the emerging opportunity for innovative health payment services. We intend to initially launch our products in Canada. We believe that Canadian businesses are em

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View this 10-K filing on SEC EDGAR